Background

  • Established in 2014, Daewon Plant Co., Ltd. (Daewon Plant) is a food waste collecting and processing business based in the North Chungcheong Province, South Korea
  • Established in 2005, VIG Partners is one of the largest private equity firms in Korea and focuses on mid-market buyout investments in the consumer, retail, technology and financial services sectors
  • In November 2023, VIG Partners identified the capital expenditure requirements of Daewon Plant and completed the transaction with prompt capital deployment

Process

  • DC Advisory was exclusively engaged by VIG Partners to advise on the opportunity to acquire Daewon Plant
  • DC Advisory provided full advisory support: building the financial model and IC Memo material, screening and selecting trading and transaction comparable multiples, and supporting the analysis of collaboration with VIG’s existing portfolio companies

Outcome

  • VIG Partners’ consortium acquired an 86% stake in Daewon Plant for KRW 20bn, and then acquired new shares in Daewon Plant worth KRW 40bn
  • The transaction closed on May 30, 2024

“I would like to commend VIG for their strategic foresight and operational acumen in the acquisition of Daewon Plant. This transaction is perfectly aligned with the growing emphasis on ESG principles, showcasing a commitment to sustainability and environmental stewardship. The decision to install a biogas production with the capital injection from VIG exemplifies a forward-thinking approach, harnessing cutting-edge technology to transform waste into renewable energy. This initiative not only mitigates environmental impact but also positions Daewon Plant as a leader in sustainable practices within the industry. With a robust financial structure and a visionary management team, I am confident that Daewon Plant will not only meet but exceed industry standards, driving significant growth and innovation in the sector. This acquisition marks a pivotal step towards a greener and more sustainable future, and I am excited to see the transformative impact it will have.”

Youngjin Lee
Managing Director, DC Advisory South Korea